Refer to the information for Decker, Inc.

Requirements

1. Using variable costing, calculate the unit product cost.

2. Prepare an income statement using the contribution margin format.

Units produced and sold ..........450 units

Sales price ...............$ 275 per unit

Direct materials.............. 52 per unit

Direct labor................ 64 per unit

Variable manufacturing overhead....... 18 per unit

Fixed manufacturing overhead ........7,875 per month

Variable selling and administrative costs... 25 per unit

Fixed selling and administrative costs ......4,950 per month